Thank you very much.
Good evening everyone.
I've been living in Canada for five years now and am very proud to have recently become a permanent resident. One of the commitments I have made is to learn French, and I hope to be able to speak with you in French on a future occasion.
I am Eduard van Gelderen, senior vice-president and chief investment officer at PSP Investments. In this capacity, I am responsible for overseeing PSP's total portfolio of over $230 billion and establishing our long-term investment portfolio strategy. My responsibilities also include government relations, sustainable investments, the complementary portfolio and PSP's internal and external communications.
I am pleased to appear before the committee today to discuss the nature and extent of our investments in the People's Republic of China.
PSP is a Crown corporation that operates at arm's length from the Government of Canada. It was established in 1999 to invest the amounts transferred by the Government of Canada for the funding of the post-2000 obligations of the following pension plans: the federal public service of Canada; the Canadian Forces; the Royal Canadian Mounted Police; and, since March 1, 2007, the reserve force pension plan.
PSP's statutory mandate is to manage the funds in the best interests of the contributors and beneficiaries and to maximize investment returns without undue risk of loss, having regard for the funding policies and requirements of the plans and their ability to meet their financial obligations. The government communicates its risk tolerance for the pension plans to PSP annually, and our task is to design and implement the most suitable investment strategy.
We take our job to support the long-term financial sustainability of the pension plans very seriously. Over our 22-year history, PSP has succeeded in its mandate and has supported the Canadian government in delivering on the pension promise. I am proud to report that over the last 10 years, PSP has achieved a return of 9.8%, which compares favourably with our benchmark. The difference amounts to an additional return of almost $26 billion.
The strong investment performance is based on our ability to invest globally via public and private markets. This allows us to allocate funds to regions with the highest economic growth and find the individual investment opportunities matching our long-term risk-return criteria.
Our geographical allocation is as follows: North America is 57%, which includes 10% in Canada; Europe is 19%; Asia and Oceania are 20%, of which 3% is in China; and Central America, South America and Africa are another 4%. We manage these investments from our four investment centres around the world: Montreal, where most of our staff is located; New York, with 57 employees; London, with 89; and Hong Kong, with 13.
PSP's sustainability activities are a key pillar of the CIO group's strategy and total fund approach. We believe ESG is not just about doing the right thing but also a financial reality. We became a signatory of the UN-supported Principles for Responsible Investment in August 2014. Since then, we have built a strong sustainability foundation and a robust ESG policy framework. Our sustainability and climate innovation group works intensively with the asset classes to oversee and implement activities across the total fund. They provide guidance on ESG themes and trends, build internal capacity through ESG knowledge sharing and collaborate with industry peers to drive systemic change on key ESG issues. We expect the same rigorous approach among the external managers and general partners with whom we work.
In closing, PSP's objective as a long-term investor is to be an insightful global investor focused on maximizing risk-adjusted sustainable value and keeping abreast of societal norms and values through active management.
This concludes my remarks today, and I look forward to your questions.
Thank you.